Apple (AAPL) earnings Q1 2023

Apple Inc. CEO Tim Cook speaks at the “First Tool-In” ceremony at the TSMC facility under construction in Phoenix, Arizona, Tuesday, December 6, 2022.

Kaitlyn O’Hara | Bloomberg | Bloomberg | Getty Images

apple We will report fiscal first quarter earnings after the bell. Analysts expect the iPhone maker to record year-over-year sales declines for the first time since his 2019.

  • Earnings: $121.19 billion
  • earnings per share: $1.94 per share
  • iPhone Earnings: $68.29 billion
  • Earnings on iPad: $7.76 billion
  • mac earnings: $9.63 billion
  • Other product revenue: $15.23 billion
  • service income: $20.67 billion

Investors’ main focus will be on the company’s December quarter earnings. In November, Apple issued a rare warning that shipments would be lower than expected due to production problems in China stemming from coronavirus restrictions.

The data points led many analysts covering stocks to slash their estimates.

Customers in many regions noticed that Apple’s shipping time for the high-end iPhone 14 Pro passed a month during the quarter, compared to the usual less than a week. upon.

Now, investors are looking for two answers on Thursday: how much Apple’s sales have really fallen due to manufacturing issues, and who didn’t get an iPhone 14 Pro in December will wait until 2023. Will I be able to wait until I get it? Q1 to Q2?

Investors may be able to get the answer to the second question from Apple’s guidance. Apple has not provided guidance beyond 2020, citing the uncertainty initially caused by the pandemic. However, Apple management usually provides a few data points that analysts can use to get an idea of ​​how the quarter is progressing.

Analysts expect Apple to report $98 billion in sales in the March quarter. If Apple’s data points suggest it could fall below that number, investors will be left wondering whether Apple can continue to outperform the market and whether declining consumer confidence will hurt the company’s business. You may question whether you are starting.

Both the smartphone and PC markets are in the midst of a multi-year slowdown, with sales declining in 2022. Analysts believe Apple will outperform many of its competitors even with declining shipments, but if consumer confidence is eroding, Apple’s premium-priced phones will ultimately and computer sales will slow down.

Hardware aside, Apple’s services business will be the focus after the bell. Several data points in the December quarter, including payments to Apple’s own App Store, suggest slowing App Store growth. The App Store is one of the largest components of Apple’s services business and is expected to hit his $20.67 billion in sales this quarter, a growth rate of nearly 6% for him. Equivalent.

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